In a move to address the growing challenge of measuring artificial intelligence investments, Grammarly Inc. has announced new return-on-investment measurement tools designed to help enterprises quantify the impact of AI-powered communication improvements. The announcement comes at a crucial time because recent data from Deloitte shows that 41% of organizations struggle to measure the exact impact of their AI initiatives.

“Grammarly’s new ROI tools represent a significant leap forward in the quest to quantify the value of AI in enterprise settings,” notes Shelly Kramer, principal analyst at theCUBE Research. “By providing concrete metrics and customizable reporting, Grammarly is not just selling a product, but offering a way for businesses to justify and optimize their AI investments.”

The newly announced suite includes two key components: the Effective Communication Score and the ROI Report. The Effective Communication Score is an industry first where Grammarly looks to differentiate, measuring multiple aspects of organizational communication, including correctness, efficiency, brand compliance and inclusive language use. The ROI Report complements these features by offering customizable reporting that aligns with specific business goals and key performance indicators related to AI-powered communication. (Editor’s note: This article is part of theCUBE’s ongoing coverage of AI ROI. Visit thecuberesearch.com for analyst-led insights for an industry anxious to see returns on hyped investments.) 

The value of these tools is already evident in early implementations. Databricks Inc., a company with over 6,000 employees, reports significant improvements after deploying Grammarly across its enterprise. Their editorial team cut editing cycle times by 50%, while their customer support team improved resolution times by 25%. Overall, Databricks estimates annual savings of $1.4 million through improved AI-powered communication efficiency and reduced training costs. 

Looking ahead, Grammarly plans to expand these capabilities with additional features focused on improving results, tracking enterprise-wide AI usage and providing deeper insights into organizational communication health. However, the company faces some challenges, including the need to establish clear causal relationships between tool usage and business outcomes and address privacy considerations in employee performance measurement, according to Kramer.

“This is a rapidly evolving space, and everyone is fighting for those enterprise AI budget dollars,” Kramer writes in an analyst brief on theCUBE Research. “As such, continuing to innovate at a rapid pace and working to deliver solutions that competitors aren’t yet thinking about will be important for Grammarly moving forward.” Despite this challenge, Grammarly’s focus on measuring and demonstrating concrete ROI could give it a significant advantage in the enterprise market, she adds.

Enterprise customers can gain early access to these new tools beginning in November 2024, with the Effective Communication Score becoming widely available to Enterprise plan customers in early Q1 2025 — find more information on that here. The launch of these measurement tools is expected to set new standards for AI ROI measurement in the enterprise communication space, according to Kramer.

“As enterprises become more discerning about their AI investments, tools that can clearly articulate their impact on the bottom line will gain a significant advantage,” Kramer emphasizes. This development could prompt other AI companies, particularly in the productivity and communication space, to develop similar measurement capabilities.

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